|
Getting your Trinity Audio player ready…
|
By Joyce Mukucha
Blanket Mine (“Blanket”), a 64 percent subsidiary of Caledonia Mining Corporation Plc (“Caledonia”) has announced that the advance dividend loan account due from the Gwanda Community Share Ownership Trust (“GCSOT”) has now been repaid allowing the community to start receiving its full dividend amount from the entity.
In a statement issued on the 7th of October 2021, Blanket Mine said, “Henceforth GCSOT will receive its full entitlement to 10 percent of dividends paid by Blanket Mine (“Blanket”).”
“In 2012, Caledonia facilitated the ownership of 51 percent of Blanket by Indigenous Zimbabweans in accordance with the prevailing legislation at that time.
This included a 10 percent ownership by the local community via GCSOT. In 2020, following changes in legislation, Caledonia increased its shareholding in Blanket to 64 percent, but GCSOT retained its 10 percent ownership.
In 2012 and 2013 Blanket made advance dividend payments to GCSOT totaling $4 million so that GCSOT had funds to establish its operations,” the statement reads.
It has been highlighted that GCSOT repaid the advance dividends by sacrificing its entitlement to future dividends:
“Initially GCSOT sacrificed 100 percent of its dividend entitlement, which was subsequently reduced to 80 percent. The outstanding balance of the advance dividend account at June 30, 2021 (being the most recent reporting date) was $0.2 million.
“On September 29, 2021, Blanket paid a dividend following which the advance dividend account has been completely repaid. Henceforth, GCSOT, one of the indigenous shareholders, will receive its full entitlement to 10 percent of Blanket’s dividends,” the statement further highlighted.
Commenting on the announcement, Steve Curtis, Caledonia’s Chief Executive Officer, said:
“In 2012 Blanket Mine fully indigenised with 51 percent of Blanket being owned by Indigenous Zimbabweans. In 2020 when the legislation was repealed, Caledonia increased its shareholding to 64% but kept the local community, through the GCSOT, as a 10% shareholder.
“Investment in our local communities and employees is key to a successful business and I am therefore delighted that the loan to the GCSOT is now fully paid off and that the community will start to receive its full dividend amount from Blanket.”